I didn't consider a "work for hire", because you asked "should the writer pay the exspense of producing the demo?"

If it were a "work for hire" you'd take it for granted the writer (you) had to pay for the demo.

Maybe I'm reading it wrong???

My concern with a company that manufactures music for lyrics, is whether or not they're using some of the same music for multiple customers, or just using mediocre generic type music.

I would think if the producer came up with brilliant music for your lyrics, he'd/she'd re-write the lyrics and keep it for himself.

Just some thoughts that creeped into my brain.

Best, John smile